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    If Player III's action at the off-path set is not a best ... — Carmelics
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    Challenges→The fourth Nash Equilibrium (R, r2, r3) arises because Player III's entire information set is off the path of play when Player I plays R and Player II plays r2, making Player III's action inconsequential to the outcome.

    If Player III's action at the off-path set is not a best response when that set is reached with positive probability under any perturbation, the equilibrium (R, r2, r3) fails the perfection test and cannot be considered fully rational.

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    Key Terms

    Off-path set(game theory analysis)
    A situation or decision point that wouldn't normally happen if everyone played the strategy being tested, but we imagine what would happen if it did occur anyway.
    Perfection test(game theory and rational decision-making)
    A strict check to see if a strategy is truly rational by testing whether it still makes sense even in unlikely situations.
    Perturbation(game theory testing)
    A small change or disturbance to how players behave; a slight variation from the original plan.
    Positive probability(probability and game theory)
    A real chance of something happening—more than zero but not necessarily likely.
    Rational
    # Rational A rational person is someone who makes decisions based on logic and evidence rather than emotions or hunches. Rational thinking means carefully considering the facts, weighing pros and cons, and coming to conclusions that make sense. It's the opposite of acting impulsively or based on feelings alone.

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    best response(Implicit in the definition of strict domination)
    A strategy s_i is a best response with respect to a probability measure p over opponent strategies if it maximizes the player's expected utility given p.
    equilibrium(Game-theoretic analysis of revolt in networks)
    A stable state configuration in which, given the thresholds and knowledge structure, the specified pattern of revolt is sustained because at least the threshold number of players revolt in every relevant state.

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    Social Contract1 linkedConsequentialism1 linked

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    The fourth Nash Equilibrium (R, r2, r3) arises because Player III's entire infor...

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